Correlation Between Bidvest and Bitcoin SV

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Can any of the company-specific risk be diversified away by investing in both Bidvest and Bitcoin SV at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Bidvest and Bitcoin SV into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bidvest Group and Bitcoin SV, you can compare the effects of market volatilities on Bidvest and Bitcoin SV and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Bidvest with a short position of Bitcoin SV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bidvest and Bitcoin SV.

Diversification Opportunities for Bidvest and Bitcoin SV

-0.59
  Correlation Coefficient

Excellent diversification

The 3 months correlation between Bidvest and Bitcoin is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Bidvest Group and Bitcoin SV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bitcoin SV and Bidvest is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Bidvest Group are associated (or correlated) with Bitcoin SV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bitcoin SV has no effect on the direction of Bidvest i.e., Bidvest and Bitcoin SV go up and down completely randomly.

Pair Corralation between Bidvest and Bitcoin SV

Assuming the 90 days horizon Bidvest Group is expected to generate 1.07 times more return on investment than Bitcoin SV. However, Bidvest is 1.07 times more volatile than Bitcoin SV. It trades about 0.05 of its potential returns per unit of risk. Bitcoin SV is currently generating about -0.05 per unit of risk. If you would invest  1,141  in Bidvest Group on May 13, 2022 and sell it today you would earn a total of  187.00  from holding Bidvest Group or generate 16.39% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy96.88%
ValuesDaily Returns

Bidvest Group  vs.  Bitcoin SV

 Performance (%) 
       Timeline  
Bidvest Group 
Bidvest Performance
0 of 100
Over the last 90 days Bidvest Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Bidvest is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Bidvest Price Channel

Bitcoin SV 
Bitcoin Performance
5 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Bitcoin SV are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Bitcoin SV sustained solid returns over the last few months and may actually be approaching a breakup point.

Bitcoin Price Channel

Bidvest and Bitcoin SV Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Bidvest and Bitcoin SV

The main advantage of trading using opposite Bidvest and Bitcoin SV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bidvest position performs unexpectedly, Bitcoin SV can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Bitcoin SV will offset losses from the drop in Bitcoin SV's long position.
The idea behind Bidvest Group and Bitcoin SV pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

Bitcoin SV

Pair trading matchups for Bitcoin SV

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Lpl Financial vs. Bitcoin SV
The effect of pair diversification on risk is to reduce it, but we should note this doesn't apply to all risk types. When we trade pairs against Bitcoin SV as a counterpart, there is always some inherent risk that will never be diversified away no matter what. This volatility limits the effect of tactical diversification using pair trading. Bitcoin SV's systematic risk is the inherent uncertainty of the entire market, and therefore cannot be mitigated even by pair-trading it against the equity that is not highly correlated to it. On the other hand, Bitcoin SV's unsystematic risk describes the types of risk that we can protect against, at least to some degree, by selecting a matching pair that is not perfectly correlated to Bitcoin SV.
Check out your portfolio center. Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.

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